Remittances from International Labour Migrants and the Standard of Living of the Left Behind Households in Sri Lanka

Abstract

AttachedThis study aims to examine the effect o f remittances on the standard o f living o f the remittance receiving households in Sri Lanka. Survey data were analyzed using thematic analysis and stratified matching method in propensity score matching. It was found that, a large majority o f labour migrants remit money to their households left behind. However, the volume o f remittances varies with the demographic and socio-economic characteristics o f the labour migrants and their households. Furthermore, it was found that remittance receiving households enjoy income from diversified sources. Average treatment effects estimated through stratified matching analysis reveal that remittance receivers enjoy a higher level o f income and higher standard o f living compared to their non-remittance receiving counterparts. Improvement o f the income by the remittances varies with the income quintile o f the households.